U.S. cuts Bangladesh tariffs to 19 percent
Bangladesh garments using US cotton and fibres will get zero duty under the deal, says Commerce Secretary Mahbubur Rahman
Bangladesh has secured a lower tariff rate under a new trade agreement with the United States. The deal was announced on Monday, February 9, 2026. Under the agreement, the US will apply a reduced tariff of 19 percent on Bangladeshi goods.
Interim government chief Muhammad Yunus shared the news in a post on X. He said the agreement would give special benefits to some textile and garment products from Bangladesh. These benefits apply only if the goods are made using materials from the United States.
Mr. Yunus said the US has agreed to create a system that allows certain Bangladeshi textile and apparel products to enter the US market with zero reciprocal tariff. This applies to products made using US produced cotton and man made fibre.
He described the deal as a positive step for Bangladesh’s export sector. Garments are the country’s biggest source of export income. Millions of workers depend on the industry for their jobs.
According to Mr. Yunus, the agreement came after nine months of talks between the two sides. Negotiations began in April last year. He said the process was long and required patience from both governments.
Mr. Yunus is known for having friendly ties with the United States. He has often spoken about the need for closer trade and economic links. In his post, he said the deal reflects growing trust between the two countries.
Commerce Ministry officials also shared details of the agreement. They said the deal is not limited to textiles alone. It includes several other trade and policy areas.
One key part of the deal allows Bangladesh to import US wheat, soybean, and liquefied natural gas. Officials said this could help improve food and energy security. It may also deepen trade links beyond garments.
The agreement also includes rules related to digital trade. Bangladesh has agreed not to impose tariffs on e commerce transactions. This move is seen as friendly to global tech and online service firms.
Officials said Bangladesh also agreed to comply with intellectual property rights standards set by the United States. This includes better protection for patents, copyrights, and trademarks. These issues have often been raised by US trade officials in the past.
Another part of the deal involves global trade rules. Bangladesh has agreed to support US proposals to reform the World Trade Organisation. The WTO has faced criticism in recent years for slow decision making and weak enforcement.
For Bangladesh’s garment sector, the textile provision is seen as the most important. Under the deal, garments made with US cotton and synthetic fibres will get zero duty access in the US market. This could make Bangladeshi products more competitive.
Industry leaders say this may encourage factories to buy more raw materials from the United States. That could raise costs in some cases, but the zero duty benefit may balance it out.
The US is one of the largest buyers of Bangladeshi garments. Any tariff cut can have a big impact on orders and prices. Exporters hope this deal will help them win more contracts.
Some experts say the 19 percent tariff is still high compared to some other trade partners. But they also say the exemption for US material based garments is a strong incentive.
Trade analysts note that the agreement shows a shift in US trade strategy. By linking tariff benefits to the use of US materials, Washington aims to support its own farmers and producers.
For Bangladesh, the deal comes at a time when it faces pressure from rising costs and global demand changes. A stable trade arrangement with the US could bring relief.
However, some critics have raised concerns. They worry that stricter intellectual property rules and WTO positions could limit policy space in the future. Others fear that local raw material suppliers may lose business.
Government officials say the deal was carefully negotiated. They argue that the benefits outweigh the risks. They also say Bangladesh will continue talks to protect national interests.
The agreement is expected to be implemented in phases. Officials did not give a clear timeline but said work would begin soon to set up the textile mechanism.
For now, exporters are watching closely. Many hope this deal marks the start of a stronger trade chapter between Bangladesh and the United States.